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What is the WACC for Nike? You can assume the equity risk premium of 4.72%. Use the cost of debt of 2.06%. Use the effective
What is the WACC for Nike? You can assume the equity risk premium of 4.72%. Use the cost of debt of 2.06%. Use the effective tax rate as of may 2021 LTM of 14%. Please show the calculations in excel.
Cost of Equity | 6.56% |
3y Adjusted Beta | 1.08 |
* Market Risk Premium | 4.72% |
+ 10y Risk Free Rate | 1.46% |
* Weight of Equity | 96.30% |
Fully Diluted Market Cap | 245,306.1 |
/ Total Capitalization | 254,736.1 |
+ After Tax Cost of Debt | 1.77% |
Cost of Debt | 2.06% |
* 1 - Effective Tax Rate (3y Avg) | 0.86 |
* Weight of Debt | 3.70% |
Total Debt net ITM Convertible Debt | 9,430.0 |
/ Total Capitalization | 254,736.1 |
+ Cost of Preferred | - |
* Weight of Preferred | 0.00% |
+ Preferred Equity net ITM Convertible Pfd | 0.0 |
/ Total Capitalization | 254,736.1 |
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